Does Management Matter? Evidence From India

Nick Bloom, Benn Eifert, Aprajit Mahajan, David McKenzie, and John Roberts

from ARE Update Vol. 18, No. 3, Jan/Feb, 2015

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Abstract

A long-standing question is whether differences in management practices across firms can explain differences in productivity, especially in developing countries where these spreads appear particularly large. A randomized controlled trial with large textile firms in India found that adopting improved management practices raised productivity by 17% in the first year through improved quality and efficiency and reduced inventory, and within three years led to the opening of more production plants.

Keywords

organizational behavior, productivity, firm management

Citation

Nick Bloom, Benn Eifert, Aprajit Mahajan, David McKenzie, and John Roberts. "Does Management Matter? Evidence From India." ARE Update 18(3)(2015):9-10. University of California Giannini Foundation of Agricultural Economics.
https://giannini.ucop.edu/publications/are-update/issues/2015/18/3/does-management-matter-ev/